Brandon's furniture store buys a sofa at a wholesale price of $97.00. If the markup rate at Brandon's Furniture store is 40%, what is the markup for the sofa?
To calculate the markup for the sofa, you need to multiply the wholesale price by the markup rate.
Markup = Wholesale price x Markup rate
Markup = $97.00 x 40%
Since the markup rate is 40%, we can express it as 0.40.
Markup = $97.00 x 0.40
Markup = $38.80
Therefore, the markup for the sofa is $38.80.
To find the markup for the sofa, we first need to determine the markup amount based on the given markup rate.
Markup rate can be calculated using the formula:
Markup rate = Markup amount / Cost price
Since the markup rate is given as 40%, we can set up the equation as:
0.4 = Markup amount / $97
To solve for the markup amount, we rearrange the equation:
Markup amount = Markup rate * Cost price
Markup amount = 0.4 * $97
Calculating this, we find that the markup amount for the sofa is $38.80.